The Impostor Rule Regarding Negotiable Instruments

question 8

Multiple Choice

The impostor rule regarding negotiable instruments:

• A) is devised not to put the responsibility for determining the true identity of the payee on the drawee of a check.
• B) makes the payee's signature valid even though it is a forgery.
• C) does not force the maker to find the wrongdoer.
• D) lays the responsibility of determining the identity of payee on later holders of an instrument.

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Definitions:

Articles of Incorporation

Official documents filed with a governmental body to legally form a corporation, outlining its structure, purpose, and operations.

Secretary of State

A high-ranking government official typically responsible for the foreign affairs of a country, or in some cases, domestic administrative duties within state governments in the United States.

Preincorporation Contract

An agreement made by individuals before the formation of a corporation, which the corporation may later adopt or ratify.

Promoter

An individual or organization that helps to initiate and plan significant events, businesses, or movements.